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Corporate Laws Central Ministry of Corporate Affairs Insolvency and Bankruptcy Code, 2016

Measures for rationalisation of the regulatory framework of Insolvency Professional Entities

01-Feb-2024 | No. IBBI/IPE/64/2024

IBBI has issued notification on Measures for rationalisation of the regulatory framework of Insolvency Professional Entities .

By virtue of this notification following clarification has been issued for the Insolveny Professional who are also acting as Insolvency Professional Agencies:-

1. Clarification in relation to disciplinary proceedings in case of an IP which is an IPE
It is hereby clarified that in case the assignment is undertaken by the IP, which is an IPE, the show-cause notice under regulation 11 of the IBBI (Inspection and Investigation) Regulations, 2017 shall be issued to:-

(a)its partner or director, as the case may be, who is an IP and was authorised to sign and act on behalf of it for the respective assignment; and/or

(b)the IPE if in the opinion of the Board, there are either repeated instances of contravention against one or more partners or directors of the IPE or instance of systemic failure on the part of such IPE.

2. Clarification on applicability of limit on number of Assignments to an IP which is an IPE: It is hereby clarified that clause 22 of Code of Conduct specified in First Schedule to IP Regulations does not apply to an IP which is an IPE

3. Clarification on applicability of fee structure to an IP which is an IPE: It is hereby clarified that regulation 34B of CIRP Regulations does not apply to an IP, which is an IPE.

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